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HUD reports 5.4 million mortgage mods made

WASHINGTON (12/8/11)--More than 5.4 million mortgage modification arrangements were started between April 2009 and the end of October 2011, the U.S. Department of Housing and Urban Development (HUD) reported in its November Housing Scorecard.

HUD said the loan adjustments included more than 1.7 million trial modifications under the Home Affordable Modification Program (HAMP) and more than 1.1 million Federal Housing Agency loss-mitigation and early-delinquency interventions. HUD said more than 880,000 permanent mortgage modifications have been made through HAMP, reducing the average payments made by those homeowners by 37%.

More than 2.5 million proprietary modifications were made under the HOPE Now program, HUD added. HOPE Now is an alliance of major mortgage servicers, mortgage counselors, government officials and non-profit groups intended to develop strengthened efforts to help struggling homeowners keep their homes.

Nearly one in four homes that took part in HAMP are located in California, and the greater Los Angeles area accounted for 7% of all mortgage modifications, nationwide.

More than 20% of mortgages held in Florida were more than 60-days past due, the report added.